Oak Creek Furniture Factory OCFF a custom furniture manufact

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs:

Source documents revealed the following during March:

The company applies overhead to products at a rate of 150 percent of direct labor cost.

Required:
Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.)

1Record the issuance of raw materials to production.

2Record Oak Creek Furniture Factory’s payroll costs. Assume the direct labor is owed but not paid.

3Record the application of manufacturing overhead to production.

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Letters (a)–(g) represent several recent transactions that were posted to some of Johnson Company’s T-accounts.  

Letters (a)–(g) represent several recent transactions that were posted to some of Johnson Company’s T-accounts.  

   
Required:
Assign letters (a)–(g) to the following descriptions to indicate how the transactions would be recorded in the T-accounts. The purchase of raw materials is provided as an example, where the letter (a) represents a debit to Raw Materials Inventory.

Work in Process		Balance on 3/1
Job 33	$	7,500
Job 34		6,000
	$	13,500

2 Homework Quetion 3 (of t 0.00 points Oak Creek Furniture Factory (OCF), a custom furniture manufacturer uses job order coating to tack the cost of each customer order On March 1,00FF had wo jobs in process with the folowing costs Job 33 Job 34 -6,000- 13,500 Source documents revealed the following during March Requisitions Labor Time Job 33 3.500 $ 6.500 Completed and sold Job 34 000 Completed, but not sold 250 in process 4 200 indiredt The company apples overhead to products at a rate of 150 percent of direct labor cost Required: Prepare journal onbins to mecornd he maberialsreuiobr costs, and applied owrheado eny iwqulred or a cansactionevent, solect \"No Joumal Enary Requind in therst account e 1 Record the issuance of raw materials to production. 2 Record Oak Creek Furniture Factory\'s payroll costs. Assume the direct labor is owed but not paid ) Record the application of manufacturing overhead to

Solution

Transaction General Journal Debit Credit Description Transaction (a) Work in process inventory $        13,700 Applied Manufacturing Overhead ( e) Factory Overhead $          1,300 Recorded Direct Labor (d) Raw materials inventory $        15,000 Recorded the Cost of Jobs Completed (f) Purchased Raw Materials (a) (b) Factory payroll $        19,690 Recorded Actual Manufacturing Overhead (c ) Factory payroll payable $        19,690 Recorded the Cost of a Jobs Sold (g) Issued Raw Materials to Production (b) Work in process inventory $        17,550 Factory Overhead $          2,140 Factory payroll $        19,690 (c ) Work in process inventory $        26,325 Factory Overhead $        26,325 [(6500+7800+3250) x 150%]